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Home» Economy» Market» Sc orders sahara chief subrata roy to remain in jail

SC orders Sahara chief Subrata Roy to remain in jail

Agencies | May 06, 2014, 11:57 AM IST
sc orders sahara chief subrata roy to remain in jail

New Delhi : The Supreme Court on Tuesday ordered the Sahara Group chief Subrata Roy to remain in jail over his company's failure to refund investors in an outlawed bonds scheme.

The Supreme Court on today rejected Roy’s plea challenging its March 4 order sending him to judicial custody for not complying the order to return investors money by routing it through SEBI.

The court also rejected Sahara's latest proposal to pay, in installments, the 100 billion rupees ($1.7 billion) the court has asked for to secure Subrata Roy's release. The court also asked Sahara to make a new proposal.

Roy and two directors were sent to judicial custody for the failure of group's two companies' SIRECL and SHICL to comply with its order to return investors' Rs.24,000 crore that they had collected through Optionally Fully Convertible Debentures (OFCDs).

Roy will continue to remain in custody as the court has asked his counsel to make a revised proposal to return investors' money to secure his release.

Dismissing Roy's plea, the apex court bench of Justice K.S. Radhakrishnan and Justice K.S. Khehar said that there is "no merit and same is dismissed".

The court said that after going through the judgment, Roy could make a revised proposal for returning the investors money as a condition to secure his release.

The court said this as senior counsel Rajiv Dhawan drew the attention of the court to Roy' earlier proposal to deposit Rs.10,000 crore.

Of the Rs.24,000 crore, Sahara India Real estate Corporation Limited and Sahara Housing Investment Corporation Limited have already deposited Rs.5,120 crore in December 2012 with SEBI.

Roy has been in Tihar jail since March 4 after failing to appear at a contempt hearing in a long-running legal battle between his group and the Securities and Exchange Board of India.


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